Business Finance Dish Network Anaylsis Essay

10008 Words Apr 12th, 2013 41 Pages
Business Finance Term Paper Assignment 2 DISH Network Submitted by: Andrew Pelkey November 20, 2012 For: Mr. Joel Rossmaier I certify that the content of this paper was written by me and that all sources have been appropriately cited: ______________________________________________________________________________________
Table of Contents Chapter 1: Introduction …...………………………………………………………… 3 Chapter 2: Financial Ratios…………………………………………………………..5 * Liquidity ratios………………………………………………………………...5 * Activity ratios……………………………………………………………….....8 * Leverage ratios ………………………………………………………………13 * Profitability ratios …………………………………………………………....17 * Market value ratios…………………..……………………………………….24
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The operating income alone was over ($224) million and the account on accounts receivable was at an all-time high of over $968 million. At this time it is relevant to mention the poor condition the economy was in and that DISH was not up to par on customer satisfaction losing 102,000 subscribers. Competitors of DISH Network were offering better deals and services that enabled the very low 0.70 current ratio in 2008 (Annual Report, 2008, p.49). Cash was not being collected fast enough and services were not competitive in order for DISH Network to meet short-term obligations, but the problem is fixed in the years after 2008, not once dropping below 1.00 on its current ratio. On the other hand, DISH Network and its main competitor DIRECTTV has not managed to maintain a current ratio equal to or above 1.00. In 2011, DIRECTTV manages a current ratio of 0.89 and is mainly due to the accumulated debts that DIRECTTV has to pay off. Therefore, it can be concluded that DISH Network is indeed has a reliable source of liquidity and will not have a problem obtaining loans or achieving its short-term obligations. The acid-test ratio is more precise than the current ratio due to the exclusion of inventory in the calculation of current ratio. It is more precise for a company’s short-term solvency than the current ratio because

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